The ERISA Industry Committee (ERIC) has applauded the recently-introduced “Middle Class Health Benefits Tax Repeal Act of 2017” (H.R. 173), which would repeal the Patient Protection and Affordable Care Act’s 40% excise tax on certain health benefits, better known as the Cadillac tax. In a January 5, 2017 letter to Senators Dean Heller (R-NV) and Martin Heinrich (D-NM), along with House Representatives Mike Kelly (R-PA) and Joe Courtney (D-CT), ERIC’s Senior Vice President for Health Policy James Gelfand said that repeal of the Cadillac tax would eliminate crushing financial burdens on employers and employees, along with time-consuming and expensive administrative tax compliance burdens.
In his letter, Gelfand adds that it would be extremely challenging for employers to discern the proper valuation of all the complex factors making up employees’ health benefits. Making these calculations, he said, would shift employers’ time, effort, and money to tax compliance, and away from improving working families’ health benefits.
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